TYM - EFFORTS IN THE WORK OF ASSISTING POOR WOMEN HA LONG, OCTOBER 14TH,2011
GENERAL INFORMATION Under Vietnam Women’s Union Started in 1992 TYM in Vietnamese means “I love you” Adapted the Grameen banking model in Vietnam Target group: poor women (monthly income below 22$ in rural areas, 27$ in urban areas)
vision ď ś Become: A leading provider of financial services for low income women and their families. Founded by VWU, combining social responsibility and expertise of VWU staff, TYM wishes to become the best microfinance model in Vietnam.
Mission ď ś Enhance living quality and improve status of poor women and their families through credit, savings and micro insurance services for women in community, facilitate women to take part in economic activities and heighten their role in society.
BASIC PRINCIPLES The poor need different financial services, not only credit Direct on-lending, no collateral but guarantees required Repeated loans in cycle with higher loan size, from US$ 50 –1,250. Firstly, the loan is used for incomegenerating activities, then it expands to housing; education or consumption purposes.
BASIC PRINCIPLES Loans are repaid in installments every week Savings are provided to help build up saving habits and create owned capital Mutual Assistance Fund helps client with better risk management and escape poverty in sustainable basis Regular center meetings equip clients with development knowledge and skills
PRODUCTS AND SERVICES • • -
Financial products Credit Savings Mutual assistance fund (or microinsurance) Non-financial services Education and training Community activities
Credit products General loan: for the purposes of manufacturing and income-generating activities; 25-50 weeks repayment with loan size ranging from US$50 – 1,250 Multi-purpose loan: for other consumption purposes; 20-25 weeks repayment with loan size ranging from US$25 –100 Long-term loan: for basic construction; 70-100 weeks repayment, loan size from US$ 150 –300
SAVING PRODUCTS a. Compulsory saving: Client contributes US$ 0.5/week b.
Voluntary saving: Term-deposit (term of 3; 6; 12 terms) Demand-oriented saving amount for clients Nearby collecting places (at center meeting) Time-saving
MUTUAL ASSISTANCE FUND Premium US$ 0.1/week 0,4% loan size/ year for loan protection
Benefits Life insurance Health insurance
Benefit for clients: US$ 150 Benefit for husband/ children: US$ 50 US$ 50 / one claim (one claim every 5 years)
Loan protection Insurance for all the loan amount; once writtenoff, clientsâ€™ families receive the whole amount repaid back.
- Members drop out at the age of 60 and above: Receive pension contributed and 100% published interest. - Members droup out TYM before the age of 60: Receive pension contributed and 50% published
Non-financial services Training on knowledge and skills for clients
Members in Branch 13, Hung Nguyen district, Nghe An province, attended an illiteracy eradication class held by TYM staff in November, 2005.
Members in Gender and Business course in Nghe An
Non-financial services Lighting candles to commit contribute to a concrete center
TYM clients in the review meeting of the branch
Non-financial services Clients were checked up and prescribed free of charge
Impressive achievements (AS PER August 2011)
65,867 women members in 10 provinces Loans outstanding: over 16 million USD Repayment rate: 99.99% Savings balance: over 3.7 million USD Equity: 5 million USD No of staff: 335
Performance (As per August 2011) NUMBER OF CLIENTS (IN THOUSAND)
60 50 40
Performance LOAN OUTSTANDING 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
Aug-11 • In thousand USD
Performance SAVINGS BALANCE 4,676
2,000 1,000 0
â€˘ In thousand USD
TYM is now heading for the target of saving/loan portfolio = 45%
Savings Balance ratio December 2010
S av ing s
S avin g s Voluntary
C ompuls ory
C ompuls ory 20%
MUTUAL ASSISTANCE FUND PERFORMANCE AS PER AUGUST 2011 Number of members: 65.867 Number of husbands: 59.040 Number of children: 82.793 Total insured people: 207.700
CLAIMS SETTLED (as per August 2011) Types of settlement
Client’s dead cases
Husbands’ dead cases
Children’s dead cases
MAF CLAIMS SETTLEMENT
CHANGES IN CLIENTSâ€™ LIVES
ď śTo economic aspects: - 80% of the clients can escape poverty and greatly improve the economic conditions of their families. - 66% of the clients can upgrade the housing conditions together with their families; they can buy durable assets after 6 years participating in TYM.
CHANGES IN CLIENTS’ LIVES To social aspects - Starting with the lack of enough rice for the families for 2 meals per day, after 6 years joining TYM, 50% of the clients’ families can ensure even the nutrition requirement of the daily servings. That number after 9 years is 72%.
Over 80.000 members have escaped poverty
CHANGES IN CLIENTSâ€™ LIVES
ď śTo social aspects - 100% of the clients can approach to formal healthcare services, like clinics or hospitals. - Rate of children attending school among the women raised from 86% (before membership) to 94% (after joining TYM).
Many clients have become micro-entrepreneurs
Formalize activities On August 17th 2010: TYM was granted the license for establishment and operation of an MFI in Microfinance sector; become Tinh Thuong one-member limited liability microfinance institution
Formalize activities In August 2008, MAF was spin-out from TYM to become a project under Vietnam Women’s Union (VWU)
MAF-TOGETHER MAF-TOGETHERSYMPATHIZING; SYMPATHIZING;TOGETHER TOGETHERSHARING SHARING
Formalize activities ď ś The organization has been granted with awards and certificates by the State and by VWU
In the future ...
Respond to membersâ€™ needs
Develop suitable products
Client Care Service
g n i d a e l A e c n a n i f o r mic Improve n o i t u t i t s n I institutional capacity
Training women' s capacity
Mobilize more capital
TYM exerts itself for the development of women and commits to be by their side on the integration road.